Online accounting software Xero (NZE:XRO), popular with small business users, has updated the Fixed Asset depreciation feature on the platform.
Xero Fixed Asset Depreciation
The Fixed Assets depreciation feature gives small businesses the ability to track fixed asset and value depreciation for tax and book keeping purposes.
In the U.S., the Internal Revenue Service sets acceptable thresholds for business costs that qualify as fixed assets able to be depreciated versus those that must be expensed.
Recently the agency has raised this threshold allowing things like computers and certain other kinds of machinery to be expensed. However, major assets like company vehicles and bigger machinery must still be depreciated.
In a post on the company’s blog, Xero’s product marketing manager Christian Newman also wrote that the feature updates will give users a single place to store all their tools and information, so they no longer have to switch between multiple pieces of software.
And because the new Fixed Assets update is built into the platform, there is no need to transfer data from other spreadsheets or software to do the necessary calculations.
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“Because Fixed Assets is built right into Xero, it makes year end even more efficient,” Newman added.
According to Newman, the Fixed Assets feature has been much-desired in the Australian Xero community. The company is based in nearby New Zealand.
And with the new update, users can now easily manage their client’s bookkeeping, depreciation and other related needs all in one place.
Prior to the introduction of the new feature, Xero customers would have to use additional accounting software to calculate depreciation of fixed assets, but that’s no longer an issue it seems.
The updated Fixed Assets feature is now fully integrated with and provided as part of the Xero platform at no extra cost.
The company also says that small businesses with 20 or less registered assets will receive the new feature in the next few weeks while those that are not already using fixed assets feature will also be able to access it immediately.